Indepen Forum background information and 2025 programme by indepenforum

The Indepen Forum

Background information and 2025

Indepen Forum Programme

INDEPEN AND THE INDEPEN FORUM

Indepen is an advisory business working with those involved in the regulated utilities, energy and water, and connectivity, including transport.

In the UK, these essential public services are provided by regulated monopoly networks, the majority of which are investor owned. The nature of the services means that customers have limited scope for choice and there are significant externalities involved in their production. As a result, the networks are the subject of great political, stakeholder and public interest, not to mention regulation.

Measuring and judging the efficiency and performance of the sectors involves numerous perspectives - government policy and objectives, the preferences of customers, shareholder objectives, intergenerational considerations, the interests of a wide range of stakeholders and communities. These points of view can be in conflict and the trade-offs involved in policy and commercial decisions are often controversial. The nature and complexity of the situation is not often represented in media reporting on the sectors and their performance or by campaigners who tend to have a single interest.

Each of the sectors makes crucial contributions to our economic, social and environmental welfare. They are all facing significant change and challenges driven by demand, technology and environmental considerations, for example in energy the low carbon transition and the growth in demand for electricity and in water issues of scarce water resources, flooding and the need to restore the water environment.

Good social, economic and environmental outcomes from the utilities would require them, their customers, supply chains and stakeholders to be treated as parts of complex systems. Historically and still to a considerable extent, policies and investment decisions have been initiated and implemented in silos, with important trade-offs unacknowledged or incorrectly valued. Increasingly, this approach has led to outcomes that are inefficient and ineffective with significant allocative inefficiency and unintended consequences.

What we do

We help regulated network clients develop their “regulatory contract” which is the key to performance management and outcome delivery. The contract aligns the outcomes the network has committed to delivering with internal management processes, such as KPIs, performance reviews and incentives. The regulatory contract is the basis of effective governance in a regulated business and makes the link between desired outcomes and shareholder objectives. We work to align the commitments under the regulatory contract with performance management and the practices that lead culture change and encourage new and more productive ways of working. The library of change practices contains more than thirty initiatives that can be adapted to the circumstances of the team and the organisation.

We explore the extent to which regulators’ incentive frameworks are consistent with other forces acting on the companies and identifying where and how performance is being compromised appropriate behaviours undermined. This can involve interactive workshops agent-based modelling.

In price reviews we provide support to ensure that significant commitments are underpinned by robust organisational arrangements that make transparent the accountability and resources needed to deliver. This means that regulators, boards, customers and shareholders can have confidence that the company’s strategies and actions will support its reputation.

We help clients to ensure that their decisions are soundly based on relevant evidence and that the evidence is soundly based, reliable and unbiassed. We advise the board and others on gaining the necessary assurance by asking the right questions about customer and stakeholder research and engagement, the nature of the research techniques and the analysis, validation and interpretation of the results of research. We design and support the implementation of performance management frameworks, including focus on commitment management and behavioural change.

We convene events at which relevant parties can explore ways of challenging the status quo, develop ideas for improvement and gain support for cooperative initiatives to address the challenges the systems are facing.

The Indepen Forum

We established the Forum in 1995. It provides a place where the status quo can be challenged and new ideas and approaches explored and refined. The meetings of the Forum are by invitation and take place under The Chatham House Rule.

The Forum is sponsored by a mixture of organisations from the utility sectors. Many of them have been long term supporters. Sponsors have the opportunity to propose topics and speakers and to issue invitations to the events.

While so far most of the Forum debates have taken place in central London, we are keen to extend our reach to other locations. In 2023 we held debates in Leeds and Edinburgh and we are planning a Dublin event in 2024/2025.

In addition to the regular Forum sessions we convene and facilitate roundtable discussions where smaller groups of interested parties can explore their thinking on a particular aspect of a Forum debate or any other issue which is central to the development of government and regulatory policy. This is particularly important where material change is anticipated.

In 2024/25 we are planning to hold a series of round tables to promote grown up discussions between companies, regulators and providers of digitalisation and advanced analytics services. The aim will be to achieve industry level changes in productivity and services that will have sustainable benefits for customers and shareholders.

Since 2018, Indepen and The Water Report have come together to host the annual Social Contract Summit, an opportunity for decision makers to explore how companies providing essential services, infrastructure, water, energy, transport and communications could provide more value to citizens, society and the environment. The agendas and speakers at the Summits can be seen at https://indepen.uk.com/the-summit/

If you have suggestions for topics and are interested in sponsoring the Forum please contact John Hargreaves - john.hargreaves@ indepen.uk.com or Ann Bishop - ann.bishop@indepen.uk.com

CHAIR: Ann Bishop

›Ann has spent the last 37 years working in the regulated environment with boards and investors in water, energy, transport, telecoms, financial services, social housing and higher education.

She is the founder and Chair of Indepen, and leads the Indepen Forum, which was established in 1995 to bring together infrastructure businesses, policy makers, regulators, investors, customer representatives, the supply chain and others to debate topical and often controversial issues which might not otherwise be considered in such a diverse environment.

Ann is chair of UK Power Networks’ Independent Stakeholder Group (ISG), established in 2019 to ensure that the DNO’s business plan for 2023-2028 reflects the needs and preferences of customers now and in the future.

Before founding Indepen, Ann worked for P&O, Chase Manhattan Bank NA, County Bank and the strategy group of Deloitte consultancy, specialising in the financial services and retail sectors.

She has served as: Board Member at Leeds Beckett University and Chair of its Remuneration Committee; Deputy Chair of Opera North; Ambassador for Wellbeing of Women, the charitable arm of the Royal College of Obstetricians and Gynaecologists; a member of Ofwat’s Expert Panel; a Commissioner of the London First Infrastructure Commission; and an INED at Affinity Water.

DIRECTOR: John Hargreaves

›John is an economist. He has been a university lecturer, a civil servant and has worked in management consultancy and in corporate finance teams. He starts from the position that the questions are more important than the answer.

John has worked in the water, energy, telecommunications and transportation sectors and advised government departments, regulatory and competition agencies and numerous investor-owned businesses in the UK and around the world. As well as serving infrastructure clients, John led the mergers and acquisitions team at Deloitte and has worked with UK government agencies on areas of public policy including education, health, and social housing.

Just now John is advising investor-owned businesses in the UK on their regulatory strategies, helping them to access new markets and services, attract investment and deliver outcomes that meet the economic, environmental and social challenges they face.

EVENTS MANAGER: Abi Rowe

›Abi provides administrative support to Indepen directors and associates, ensuring that work is co-ordinated across the team and that internal communication is as effective as possible.

She manages the annual Forum planning cycle, ensure the Forum database is current and relevant and contribute to the organisation of Forum and Roundtable debates.

Her background is in project management, business development and customer service in client facing, commercial businesses

ASSOCIATE: Bridget Rosewell CBE, MA, MPhil, FICE, FACSS, FSPE

›Bridget Rosewell is an experienced director, policy maker and economist, with a track record in advising public and private sector clients on key strategic issues. She chairs Flood Re and the M6 Toll Company and is a non-executive for the UK Infrastructure Bank, Northumbrian Water and the Atomic Weapons Establishment. Among other roles, she has been a Commissioner for the National Infrastructure Commission, chaired DVSA, been Senior Independent Director for Network Rail and Chief Economic Adviser to the Greater London Authority.

She was appointed CBE in December 2018 and is also a Fellow of the Institution of Civil Engineers, the Academy of Social Science and the Society of Professional Economists. She writes on finance, risk and uncertainty as well as infrastructure and modelling validation.

She has worked extensively on cities, infrastructure and finance, advising on projects in road and rail and on major property developments and regeneration. She has advised on changes to planning regulation and TfL’s finances and has appeared at planning Inquiries.

ASSOCIATE:

David Elliott

›David has over 30 years’ experience in the utilities sector, primarily the water industry, at all levels including 10 years as an Executive Director at Wessex Water.

More recently he worked as Chief Innovation and Strategy Officer at Wessex Water helping them migrate to a modern and agile water service provider based upon an open-system model enabling Wessex to deliver greater customer and environmental value.

David is a systems thinker, and has particular interest and experience in how markets, through the use of digital business models, can encourage better system design. One of his key areas of specialism is how natural capital can contribute to some of our societal and environmental issues today, and how customers, as prosumers can contribute to better outcomes.

David has experience with a number of start-ups including founding EnTrade, an exciting online trading platform for environmental services that enables businesses to collaborate on investments to improve environmental and societal outcomes. He has also served as Non-Executive Director at Flipper, an energy auto-switching platform and Albion Water – an independent water and sewerage services provider for new housing developments.

In the innovation and research space he recently served as a Non-Executive Director of UKWIR, specialising in water industry research and innovation.

David is the founder of Business4Life, a leadership development programme involving setting up model businesses whose profits go to WaterAid

ASSOCIATE: Natalie Saunders

›Natalie has worked with Indepen and our clients over a number of years and advises companies on changing the way they respond to challenges and opportunities arising from market, social, reputational and regulatory changes. She is a qualified employment lawyer and experienced HR director and has an MA in Jurisprudence from Oxford University.

She works with chairs, chief executives and boards to interpret and frame their responsibilities for establishing high performing and ethical cultures and ensuring that leaders, governance, policies and practices drive the right behaviours in the business and partner organisations. She specialises in equality, diversity and inclusion programmes, leadership development and coaching.

She is currently exploring the concept of the purpose driven organisation and the extent to which this model is appropriate to the complex nature of the responsibilities of infrastructure companies and their regulators.

ASSOCIATE: Dr Melvyn Weeks

›Melvyn is an Associate Professor in Economics at the University of Cambridge and a Fellow of Clare College and an associate of Indepen.

He has previously worked as Senior Economic Advisor to Ofgem. This work focused on the provision of advice relating to the benchmarking of costs for electricity companies. He has also provided advice to the regulator for the DPCR5, RIIOED1, RIIO-GD1 and RIIO-T1 price reviews. Melvyn prepared expert evidence for Ofgem in the wake of the Competition and Markets Authority (CMA) inquiry into a number of aspects relating to price setting during RIIO-ED1.

More recently, Melvyn has represented a gas company in providing evidence to the CMA in the area of cost assessment for RIIO-GD2, and has worked with a distribution network operator, providing advice on a number of issues relating to RIIO-ED2 including cost assessment and flexibility markets.

He has advised Ofwat, Ofcom and other regulatory bodies on issues relating to incentive design, welfare effects of policies and econometric modelling. He also carried out quality assurance of data and evidence on behalf of regulatory bodies – a recent example concerning the safety of smart motorways.

Melvyn’s key interests lie in micro-econometrics, particularly discrete choice models, modelling demand systems in empirical industrial organisation, revealed and stated preference models, model testing and evaluation, computationally intensive methods including machine learning, simulation-based inference and the bootstrap, and convergence within and across countries.

He is adviser to the smart meter analytics platform company SMAP Energy and digital technology company Fetch.AI.

At Indepen he provides leadership and support on projects relating to markets and incentives, with a focus on technology applications, statistics and econometrics.

ASSOCIATE: Martin Hurst

›A professional economist, Martin spent the first 10 years of his working life in the Treasury and then became a senior civil servant in departments covering housing, transport and environment. For three years he was in Number 10 as a civil servant senior advisor to Tony Blair on environment, housing and planning and then 10 years as a director in Defra, including four years as water and floods director and four years as commercial and major projects director.

Since Martin left the civil service at the end of 2015 he has developed a wide portfolio of roles. These include chairing the southern regional flood and coastal committee, Southern Water’s independent environment panel and the Shepherds Bush Housing Group. Martin is a board member of the Guiness Partnership and Sustainability for Housing and a professor of practice on major infrastructure and sustainability at UCL..

He has done consultancy projects in and beyond the utilities sector: advising the House of Commons environmental audit committee, the 2017 long-term water resources study and the national drought exercise, and as a member of the Ofgem RIIO2 challenge group. Martin has published on water, climate adaptation and economic appraisal.

ASSOCIATE: Alan Sutherland

›Alan has enjoyed a 40 year career ranging from investment banking through strategic consultancy to economic regulation.

He established the office for the regulation of water services in Scotland in 1999 and led it for over 24 years until the end of 2023. During that time, Alan was at the forefront of many initiatives in the regulation of the water sector. Scotland’s water industry moved from being a real laggard in both its operational and costs performance to a leading company. Perhaps the most obvious and impactful initiative was the successful introduction of retail competition in Scotland in 2008, the market was opened in a similar way in England in 2017. He was also instrumental in starting a debate about the levels of asset maintenance and replacement that were appropriate.

Prior to establishing economic regulation to Scotland’s water sector, Alan was involved with a US footwear company that sought to introduce its brand to Russia and capitalize on the manufacturing potential of the local footwear industry. He served as a consultant at Bain and Company for nearly six years, working in London, Moscow, Kiev and Bucharest. He joined Bain and Company after completing an MBA and MA at the Wharton School and the Joseph H Lauder Institute of the University of Pennsylvania. Before Wharton, Alan was an investment analyst at Robert Fleming and Company (now subsumed into JP Morgan).

Alan has also advised the Governments of New Zealand and Romania on introducing economic regulation. He was a member of the Bureau (Board) of the OECD’s Network of Economic Regulation. He supported the OECD in projects in Mexico and Brazil; the IMF in Cyprus and the Chinese Ministry of Water.

2025 INDEPEN FORUM PROGRAMME

25 February

Baby, baby, baby you’re out of time. Is it too late for competition to rescue privatisation?

Competition has taken two decades to work in telecoms, there are positive signs in energy and water is making a start. Can we now accelerate the demise of (un)economic regulation?